For February, the cost components of a picture frame include $0.25 for the glass, $.65 for the wooden frame, and $0.80 for assembly. The assembly desk and tools cost $400. 1,000 frames are expected to be produced in the coming year. What cost function best represents these costs?
A)y = 1.70 + 400X
B)y = 400 +1.70X
C)y = 2.10 + 1,000X
D)y = .90 + 400X

Question

Quizplus · Accepted Answer

The formula for the cost function is: total cost = (unit cost per frame x number of frames) + fixed costs
Unit cost per frame = cost of glass + cost of wooden frame + cost of assembly
Unit cost per frame = $0.25 + $0.65 + $0.80
Unit cost per frame = $1.70

Fixed costs = cost of assembly desk and tools
Fixed costs = $400

Therefore, the cost function is:
y = 1.70X + 400

where X represents the number of frames produced. Option B is the correct answer.

For February, the Cost Components of a Picture Frame Include